SHFE Zinc Fluctuated in Night Session, Focus on Subsequent Consumption Performance [SMM Zinc Morning Comment]

SMM, April 24:

Overnight, LME zinc opened at $3,468.5/mt, touched a high of $3,474/mt early in the session, then pulled back in a fluctuating manner toward the daily moving average, and subsequently hovered at lows. LME zinc hit a low of $3,428.5/mt during the session, ultimately closing down at $3,454/mt, down $12.5/mt or 0.36%. Trading volume decreased to 9,295 lots, and open interest increased by 1,971 lots to 231,000 lots. Overnight, LME zinc posted a bearish candlestick, with the upper Bollinger Bands rail forming resistance. Ongoing tensions in the Middle East continued to push the US dollar index higher, and LME zinc pulled back in early trading. However, LME zinc ingot inventory continued to decline, limiting the downside for zinc prices, and the overall trend maintained a fluctuating trend.

Overnight, the most-traded SHFE zinc 2606 contract opened at 24,370 yuan/mt, touched a high of 24,370 yuan/mt early in the session, then quickly fell toward the daily moving average and subsequently fluctuated around it. SHFE zinc hit a low of 24,255 yuan/mt during the session, ultimately closing down at 24,315 yuan/mt, down 25 yuan/mt or 0.1%. Trading volume decreased to 35,901 lots, and open interest increased by 922 lots to 103,000 lots. Overnight, SHFE zinc posted a bearish candlestick, with the 10-day moving average providing support below. On the macro front, tensions persisted. On the fundamentals side, China's zinc ingot inventory levels remained high, and the ore tightness had yet to ease. Amid the tug-of-war between longs and shorts, SHFE zinc continued to hover at highs.

Data source statement: Data other than publicly available information is derived from publicly available information, market communication, and SMM's internal database models, processed by SMM. It is for reference only and does not constitute decision-making advice.